IA01
Caleb Lehman IA01 https://www.economist.com/business/2018/09/26/michael-kors-splurges-on-versace The American brand Michael Kors took a bold leap as a company by buying out Versace for $2.1 billion on September 25th. Michael Kors made such a move in order to bring the brand to the level of some of the top European designers. With the acquisition of Versace and Jimmy Choo (bought for $1.35 billion in 2017), Michael Kors changed its name to Capri Holdings. Although the buyout seems as a good move for the company, Michael Kors shareholders were not convinced, and share prices fell by nearly a tenth. There was also disapproval voiced by Versace customers who feared the brand would become "tacky" and lose the original luster. Capri Holdings will be considered a merger company; the result of one company buying another company and creating a new one. Michael Kors' motivation for the merger was to attain new markets and distribution Chanels, MK wante...